Yunhong Green Cti Ltd. · NASDAQ:YHGJ
Yunhong Green Cti — CTI Industries — Investor Presentation (May 2010)
31 slides from Yunhong Green Cti's investor presentation, May 3, 2010
Slide 1: Slide 1
Slide 2: CTI Industries Corporation
CTl Industries Corporation . NASDAQ Capital Market: CTIB cn 4
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, and investors are cautioned that outcomes and results may vary from those
Slide 4: CTI Industries: Value-Added Design, Engineering and Production for Flexible Film Products
Tl Indus Value-Added Design, Engineering and Production for FLEXIBLE FILM PRODUCTS
Slide 5: Highlights
Highlights ¢ Named one of Fortune Magazine’s 100 fastest growing small and medium-sized public companies in 2009 ¢ Profitable 10 straight quarters ¢ Shareholders’ Equity up over 47% since 2005; Book Value/Share up 36% in same period ¢ Current ratio 1.13 and debt to equity fay ratio of .38 Ch
Slide 6: Pouches
Slide 7: Ziploc Vacuum Bags
Ziploc’ Vacuum Bags ¢ Developed with CTI technology ¢ Produced for S.C. Johnson & Son, Inc. ¢ Marketed under Ziploc brand ¢ Now in thou retail stores
Slide 8: Food and household storage system developed by CTI
¢Food and household storage system developed by CTI ¢ Patented zipper closure, film and valve ° Reeateeable pump * Use in refrigerator, freezer, or countertop ¢ Protects food 5X longer
Slide 9: Universal Vacuum Sealer Bags
bags and I E25 Universal Vacuum Seater Bags “Works with all food Seallne machines *Uses CTI film technology “Industrial strength” 40 BAGS Gallon Size Universal aa Vacuum Sealer oa Bags frinates Freezer. q urn + Locks in Freshness + Preserves Flavor
Slide 10: Novelty Balloons
Novelty Balloons cs
Slide 11: Foil Balloons
Foil Balloons e Leading producer of foil balloons for 30 years ¢ Marketed throughout U.S., Mexico, and Europe
Slide 12: Latex Balloons
enw Hie iteA WOO: ¢ Manufactured in Guadalajara, Mexico ¢ Marketed in U.S., Canada, Mexico, and Europe
Slide 13: Laminated and Printed Films
Laminated and Printed Films %
Slide 14: Packaging and Specialty Film Products
Packaging and Specialty Film Products ¢Commercial, industrial and medical uses ¢Laminated and coated films ¢Up to 8-color printing - environmentally friendly
Slide 15: Design and Development
Design and Development ¢ Value-added design, engineering and development ¢ Customer product development - ZipLoc Vacuum Storage System - Embossed packaging film - Custom pouch product for medical application ¢ Current customer projects in development
Slide 16: Internal Product Development
internal Product Development ¢ Over 500 novelty balloon graphic designs - New designs each year - New balloon shapes ¢ ZipVac vacuum storage system - a unique, effective food storage system - Patented zipper seal features - Patented valve - Patented embossed film
Slide 17: Technology
Technology ¢ Value-added technology component to products ¢ Design expertise, know-how and proprietary features - 27 patents and 3 patent applications covering pouch, film and novelty products - 13 patents on pouch closures and film methods
Slide 18: Production Facilities
Production Facilities ¢ Principal plant and offices in suburban Chicago (Barrington) ¢ Plant and offices in Guadalajara, Mexico - Production of latex balloons
Slide 19: Distribution Facilities
7 " 110n Fac - principal warehouse and distribution; sales and customer service e Mexico - warehouse, sales, customer Service for Mexico and Latin America - warehouse, sales and customer service for U.K. - warehouse, and customer service for Europe en |
Slide 20: Supplier to Major Companies
Supplier to Major Companies ¢ S.C. Johnson & Son, Inc. e Rapak (D.S. Smith) ¢ Dollar Tree ¢ Walmart (in Mexico and the UK) ¢ Clinton Cards ¢ Sears Holdings
Slide 21: Other Distribution Channels
a Other Distribution Ch ind (U.S., Canada, Mexico, Europe, and Ausiralia) Reta Aa
Slide 22: Market Size
Market Size ¢ Zippered Pouches - $4.2 billion* ¢ Flexible Packaging Films - $6.2 billion** ¢ Foil Balloons -Est. $250 million (world) ¢ Latex Balloons - Est. $500 million (Americas and Europe) * Parker, P.M. (2006). The 2007-2012 World Outlook for Polyethylene Household Food Storage, Sandwich, and F
Slide 23: Growth Initiatives
Growth Initiatives ¢ Novelty Balloons - Europe and Latin America - Major retail chain programs ¢ Pouches - Pursue retail chain opportunities - Universal pouch - New distribution channels ¢ Joint product development programs) (2
Slide 24: Financial Review
- Financial Review cs
Slide 25: Income Statement Overview
Income Statement Overview (In Thousands) Three Months 2007 2008 2009 03/31/10 Net Sales 36,510 44,981 41,295 12,411 Cost of Sales 27,826 34,658 32,082 9,366 Operating Expenses 7,439 7,940 6,987 2,085, Income from Oper tions 1,245 2,383 2,226 960 Interest Expense 1,295 1,037 1,085 244 Tax Expense St.
Slide 26: Income Statement Ratios
income Statement Ratios (As a Percentage of Sales) Cost of Sales Operating Expenses Income from Operations Net Profit Gross Margin 2007 76.21% 20.38% 3.41% 0.22% 23.79% 2008 77.05% 17.65% 5.30% 2.57% 22.95% 2009 77.69% 16.92% 5.39% 2.43% 22.31% Three Months 03/31/10 75.47% 16.80% 7.74% 4.83% 24.53%
Slide 27: Sales by Product Category
Product Category Foil Balloons Films Pouches a Latex Balloons Other Total Sales by Product (In Thousands) Three Months Ended 3/31/2010 5,977 1,367 3,041 1,827 199
Slide 28: Operating Expenses
Operating Expenses (As a Percentage of Sales) a 2007 2008 2009 03/20 Ay Operating Expenses 7,439 7,940 6,987 2,085 Operating Expenses as a_% of Sales 20.38% 17.65% 16.92% 16.80%
Slide 29: Income from Operations
Income from Operations (As a Percentage of Sales) 1 () 2007 2008 2009 02/3) Ay Income from Operations 1,245 2,383 2,226 960 Income from Operations as a % of Sales 3.41% 5.30% 5.39% 7.74%
Slide 30: Balance Sheet Highlights
Balance Sheet Highlights (In Thousands) Current Assets Current Liabilities tal Long Term Debt Working Capi Debt to Equity Stockholders Equity Stockholder's Equity per Share 2007 17,801 16,483 1,318 6,237 0.95 6,591 cals) 2008 17,688 16,222 1,466 6,019 0.78 7,747 2ASAS 2009 19,149 16,735 2,414 4,882
Slide 31: Slide 31